Psych Hospital Company US HealthVest Partners with Capital One To Get $130M Credit Facility

US HealthVest completed refinancing with Capital One worth $130 million in debt capital.

Announced Friday, the capital will help the New York City-based psychiatric hospital company acquire and establish de novo facilities. It has a portfolio of eight facilities that care for 30,000 patients. Its hospitals are in Illinois, Washington, Indiana and Georgia.

Capital One’s Commercial Bank provided US HealthVest multi-product, customized financing solutions, according to a news release.


US HealthVest saw the opportunity to refinance existing debt with a traditional bank at attractive rates. “That was a key consideration,” James Cha, chief financial officer for the company, told Behavioral Health Business.

“It does also provide us some additional capital for new projects that we have in our pipeline as well as potential acquisitions,” Cha said.

He added that the company was not ready to share any new details on potential projects.


Dr. Richard Kresch, a psychiatrist, founded US HealthVest in 2013. The company develops psychiatric hospitals independently and often through joint ventures with local hospital systems. US HealthVest and its partners are seeking to address a shortage of psychiatric beds in the U.S.

Local hospitals often deprioritize psychiatric hospital services and other behavioral health services because of operational and payer reimbursement challenges. US HealthVest steps in to fill that void. The approach is often successful, as many hospitals are willing partners. However, the process of building, staffing and paying for these types of hospitals can be slow and complicated. 

US HealthVest does not go out of its way to avoid states with certificate of need laws, while many behavioral health companies do. The company sees CON laws as a moat for its investments.

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